The soy complex came under slow steady pressure today. There is a lot going on to consider. The weather domestically is important, but it is early still for the bean crop. The question now is will the corn situation worsen ? Will corn acres be left unplanted due to insurance. The guess is a modest amount of bean acres will be added. Although yield may not be definable as of yet as we have a long road to go. The global protein market is under pressure as seen in China with a collapse of the crush markets forcing down time. The structure here is shifting. The Veg oil market remains supported in general. This should continue through Aug to October. The day to day is difficult to guess and volatility will create risk. The long term trends should remain down in the soy with a relative strength in bean oil. This may allow the oils hare to gain. Look for rallies to sell. The producer needs to be mindful of the different environment.
The Corn may have further strength, The weather the last week of may, first week of June is important. The domestic balance sheet can draw down. 10 acres may be reduced. 2) The yields now as questionable for some time. The temps look to remain a bit cooler which will potentially concern the trade.
The summer can add risk to the equation, exercise caution. Feel free to contact us with questions or a review of our outlook. Enjoy the holiday weekend
Be Well